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BMW has put a heap of work into its M3 coupe, and the results are simply remarkable - whether tootling on the road or tearing up the racetrack.

It was always going to be an interesting stoush this year in the battle of the affordable supercars. Last year, Audi's excellent allwheel-drive V8 RS4 sedan prevailed.

This year it had to contend with the return of a much-revised BMW M3 coupe, with a raft of electronic driving aids and a lightweight V8 replacing the venerable straight-six engine. Both cars won the hearts of the judging team for their competence and sheer driving pleasure, but when the numbers were crunched the M3 regained its top spot on the podium - a position it's occupied several times before.

Some would say it's heresy but the new M3 is no longer powered by the aurally exquisite, torque-rich straight-six, but a high-revving, hi-tech V8. It's lighter than the six-cylinder it replaces and makes a meaty 309kW at a heady (for a V8) 8300rpm. And it's a ripper.

The 4.0-litre V8 has eight individually controlled throttle butterflies, race car-style, as well as BMW's double VANOS camshaft control, which helps the engine get a 'second wind' and sweetly sing at better than 8000rpm. Its on a par aurally with the previous sixes. Some might say it's better.

The 400Nm of torque is also impressive; but importantly, 85 per cent of the pulling power is available through a 6500rpm rev range, which means constant gear swapping is unnecessary. But there's a slick, close-ratio, six-speed manual anyway, for maximum effect when the red mist descends, which is something to be aware of when the conditions are right.

Unlike many high-performance cars, the new M3 coupe is equally adroit on the road as the racetrack, with amazing grip, poise, suspension control and balance, thanks to the 50/50 weight distribution. Even mid-corner bumps at high speed on constant-radius corners don't unsettle this Beemer.

A carbon-fibre roof that saves 22 kg, lowers the centre of gravity and assists body stiffness is evidence of how serious BMW is in optimising chassis dynamics these days.

The M3 has tarmac-tearing brakes: great pedal feel and modulation and devastatingly effective retardation, even after sustained heavy braking. And this car is the first to feature Brake Energy Regeneration.

The ABC judges aren't fans of BMW's iDrive but will concede it's been made significantly more user-friendly.

And while also not fazed by new technological bells and whistles, we were mightily impressed by the new 'M-Drive' feature which, via iDrive, allows the 'pilot' to select various combinations and thresholds of the steering force, damper control, throttle sensitivity, traction control and stability control. Once programmed, these features are instantly engaged by a button on the steering wheel.

This is a genuinely impressive feature that enthusiast drivers will love. You can dial up a setting to suit the conditions and your level of skill. You can have everything switched on and looking after you or partially/totally disabled for the ride of your life, especially on a racetrack.

M3 is an amazingly competent, comfortable and rewarding sports saloon that happily 'tootles' around town and offers supercar performance and thrills when given its head.

Finalists
Audi RS4 Quattro
BMW 335i Coupe 3.0

Previous Results
2007 - BMW M3
2006 - Audi RS 4 quattro